In the U.S. and UK, voters have changed economic policies to be more internally focused, and China is stepping up to fill the international vacuum.
There’s a shift from monetary to fiscal stimulus, as tax policies and infrastructure investments play a greater role. As the Fed and solid economic activity push interest rates higher in the U.S., the dollar and commodity prices will likely strengthen.
Overall – despite the political uncertainty – the world economy is improving and there is business optimism, at least for the near term.
None of this changes long-term concerns and opportunities such as aging societies in the advanced economies, disruption to business models and labor markets from new technologies, and the need for a free flow of talent and capital.
Business clarity will emerge beyond the rhetoric. So keep calm and carry on!